5 Benefits of Carbon Footprinting Your Organisation

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24 May 2023 · 8 min read

Carbon footprinting is a powerful tool that enables organisations to assess their environmental impact and develop strategies to reduce their carbon emissions. By identifying areas of high impact and implementing effective measures, organisations can improve their environmental performance, drive cost savings, enhance brand reputation, and increase competitive edge.

1. Minimise environmental impact

Reducing your carbon footprint directly reduces environmental impact. Measuring it provides insight into carbon hotspots — areas within operations that produce the largest GHG emissions. Common hotspots include energy use, transportation, supply chain, and waste disposal. GHG emissions are broken down into Scope 1 (direct), Scope 2 (purchased electricity), and Scope 3 (value chain).

2. Improve reputation

Demonstrating a commitment to sustainability improves reputation among customers, investors, and employees. IBM’s 2022 survey found over half of respondents say environmental sustainability is more important than 12 months ago. Unily concluded that 65% of respondents are more likely to work for a company with strong environmental policies.

3. Compliance with regulations

Many countries mandate emissions reporting. The EU’s CSRD requires approximately 50,000 companies to report on sustainability. The UK’s SECR policy requires organisations to publicly report on carbon emissions and energy use. Australia’s NGER scheme provides a framework for reporting GHG emissions, energy production and consumption.

4. Setting targets

Measuring your carbon footprint allows efficient and accurate targets to be set. Science-based targets (SBTs) provide a clearly defined pathway to reduce emissions in line with limiting global warming to 1.5°C. The SBTi has created the framework for near-term targets (5–10 years) and a net-zero standard.

5. Identify opportunities for cost savings

Carbon footprinting can identify areas where you could reduce energy usage and GHG emissions, leading to cost savings. Switching to energy-efficient lighting, promoting carpooling, or using more efficient vehicles are common opportunities. Compare Your Footprint client Internet Fusion Group implemented a Plastic Reduction Strategy that resulted in significant financial savings.